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    Marketing Information System of

    Coca-cola

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    Group: Juvenile

    Members of the Group:

    Serial no. Name Roll No. Remarks

    01 Suranjit Kar Sujan 005

    02 Anuva Bhattacharjee O85

    03 Mollika Ghosh 095

    04 Sanjida Abedin 11905 Jannatul Ferdous 163

    06 Nujhat Zahan 167

    07 Nasrin Akhtar 252

    Table of content:

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    Serial no. Name Page no.

    01 Acknowledgment 5

    02 Letter of transmittal 603 Introduction to Marketing

    Information System

    7

    04 Marketing Information

    system or MKIS of Coca

    Cola:

    14

    05 Conclusion 26

    06 Reference list 27

    AACKNOWLEDGEMENTCKNOWLEDGEMENT

    All praises are for the almighty Allah. We are grateful to him in all regards. Here we

    thank the almighty that he gave us the ability to prepare this report timely. We express

    our thanks to our teacher Md. Moktar Ali Sir for assigning us a report dealing with the

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    true events of the real social life and valuation process and providing us a detailed

    outline. Without his kind supervision, this report would not come in light. Finally, we

    would like to pay our gratitude to each and everybody who somehow helped us in

    preparing this report.

    Letter of Transmittal

    4th May, 2011

    Md. Moktar Ali

    Associate professor

    Course teacher

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    Dept. of Marketing

    Subject: Submission of Report.

    Dear Sir,

    We are very glad to submit you the assignment onMarketing Information System of Coca-Cola,which was assigned to us.

    We would like to say that this assignment was helpful for us to know about different problems,

    aspects & process of corporate market and society that is followed by Coca-Cola. We arevery thankful to you for assigning us this fantastic opportunity.

    This report contains the explanation concerning the company and informations associated withit. It also includes their explanation, and some application regarding it. We tried to synchronize &assemble these based on collected information.

    We feel that this assignment has enhanced our knowledge on Marketing Information System

    and its application will be beneficial for us. If required, we would be obliged for furtherinformation.

    Sincerely,

    Juvenile GroupSec: A, 15th batch

    Department of MarketingFaculty of business studies

    University of Dhaka.

    Introduction to Marketing Information System

    The globalization of market place and the revolution in technology has increased the

    customer service requirements. To carry out there requirements managers need high

    quality information and those information need to be available. And this increase the

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    need for a synchronize system for managing data which has worked for the establishment

    of Marketing Information System. Because information has become a critical resource for

    the organizations competing in todays rapidly evolving business environment (Suidan,

    1994). And Marketing Information System helps to manage the wealth of information

    that provides guidance for decision making.

    A Marketing Information System is a management information system which is

    designed to generate, analyze, disseminate, and store anticipated marketing decision

    information on a regular, continuous basis for supporting the marketing decision making

    process.

    Kotler, et al. (2006) defines MKIS as people, equipment, and procedures to gather, sort,

    analyze, evaluate, and distribute needed, timely, and accurate information to marketing

    decision makers.

    A Marketing information system basically contains the following components-

    Internal environment

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    Databases

    Administrative supports

    User interfaces

    Applications software

    Objective of Marketing Information System:

    Information is critical for effective business operations (Glazer, 1991) and the main

    objective of Marketing Information System is providing the required information at a

    right time and in a right form. However Marketing Information System provide

    advantage to an organization as following-

    Process order faster and with more accuracy

    Improve customer relationship

    Allocate budget effectively

    Standardize customer service quality (www.answers.com)

    Types of data:

    Two types of data are used in marketing information system-

    Internal data: According to porters value chain model

    (Porter and Millar, 1985) internal data can be classified into the following categories-

    Inbound logistics data

    Production and operation data

    Outbound logistics data

    Sales and marketing data

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    Customer service data

    External data: External data can be classified into following categories-

    Business partners

    Single-source data services

    Market research project

    Marketing environment

    Decision support system for MKIS:

    Information systems researchers and technologists have built and investigated

    computerized Decision Support System (DSS) for approximately 40 years. There are

    mainly four broad types of decision support system-

    Reporting and inquiry systems: This helps marketing managers to inspect the records

    of company activities. Such as exception report includes one or more quantitative

    indicators of performances and compared to a standard.

    Analytical models:Analytical models include computer programs which help to predict

    future problems. Basically three types of analytical models are used in a broad

    dimension-

    Forecast models

    1. Unconditional forecast models

    2. Conditional forecast models

    Simulation models

    Optimization models

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    Executive support system: Executive support system (ESS) is a combination of

    analytical models and reporting and inquiry systems. It makes the MKIS system easier.

    However researchers suggest that marketers prefer simple interfaces with few options

    (Jiang, Curry, and Pick).

    Group decision support system: In this system multiple decision makers involved to

    solve a problem. It also support electronic meetings, group interaction, generates and

    process information (Gray and Olfman. 1989).

    Artificial intelligence in MKIS:

    Artificial intelligence is the area of computer science that created machines which can

    engage on behavior which is considered as human intelligent. It is a system which can

    mimic human thought, understand speech, beat the best human chess player, and

    countless other feats never before possible. (www.a-i.com/) The main areas of artificial

    intelligence are-

    Intelligent system

    Knowledge

    Demons

    Expert systems

    Neural networks (www.birdstoppers.com).

    However among all of these here we will discuss the two most applied artificial

    intelligence system-

    Expert system:

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    Expert system is a computer program that simulates the judgment and behavior of a

    human. Such a system contains a knowledge base accumulated experience and a set of

    rules. Todays expert systems deal with domains of narrow specialization. The main uses

    include-

    Single source data for trends

    Filter marketing data

    Develop forecasting model

    Set sales quotas

    Train sales personnel(Steinberg and Plank, 1990; Schmitz, Armstrong, and

    Little, 1990)

    Neural Networks:

    Neural network is a mathematical model or computational model which is inspired by the

    functional aspects of biological neural networks. It contains a group of artificial neurons.

    The most important aspect of neural network is its ability to make decisions based on

    there past experience.

    Steps for developing a Marketing Information System:

    Marketing Information System is an ongoing system. It is developed in a very systematic

    way by a complex process. However the overall process can be categorized in three

    steps-

    Planning:

    Planning means creating a guideline for the effective implementation of a Marketing

    Information System. However in this stage they prepare financially along with the

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    combination of available resources and people (Cox and Goode, 1967; Marshall and

    Lamotte, 1992). The planning stage of marketing information consist the following tasks-

    create an executive commitment

    structured the team

    execute marketing audit

    set organizations goals

    define macro specification

    budget

    Technical Development:

    This stage actually executes the overall process. In this stage the idea generated from the

    planning step is implemented for the development of an effective marketing information

    system. However this stage executes the following activities-

    create the data base system

    identified required software

    identified required hardware

    develop communication network

    develop system control

    design user interface

    construct prototypes of the system

    However it is important to note that the technical development is an interactive process,

    so the integrity among the various department of the organization is must.

    Implementation:

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    When the developed system is examined as a prototype and succeeded than the system is

    ready for implementation. However to make the system successful and effective

    implementation should be done in the following direction-

    1. Phased implementation

    2. User training

    3. Feedback

    4. Modifications

    However, after the brief description of Marketing Information System we can say that the

    most important matter is the integration and the proper planning. For the effectiveness of

    this system the Marketing Information System has become the prerequisite for every

    organization in the world of competition.

    Marketing Information system or MKIS of Coca

    Cola:

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    We all know that no marketing activity can be carried out in isolation. That means there

    are various forces could be external or internal, controllable or uncontrollable which are

    working on it. Thus to know which forces are acting on it and its impact the marketer

    needs to gathering the data through its own resources (computer based) which in terms of

    marketing we can say he is trying to gather the market information or form a Marketing

    Information System (MKIS). (www.marketing91.com.)

    Coca Cola is not an exception. It also has MKIS to get an organized flow of relevant

    information to guide marketing decision making.

    Basic components of Coca Colas MKIS:

    There are some basic components by which coca colas MKIS is created. They are

    discussed below-

    1. Internal Environment:

    The first component of a MKIS is the internal environment of the organization. And here

    in the Coca ColaCompany the internal environment includes the managers who use the

    system, the types of decisions they must make, corporate objectives, the cultural, social,

    political factors that influence its activities and decision making and many other factors.

    2. User Interfaces:

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    Coca Cola Company has a huge arrangement for the user interfaces. It has a number of

    computers and equipments for its marketing managers to use MKIS.

    3. Databases:

    Coca Cola has a large database which consist both internal and external data to help its

    marketing mangers in decision making.

    4. Application Software:

    Application software is the complete, self-containedcomputer program that performs a

    specific useful task, other than systemmaintenancefunctions.

    (www.businessdictionary.com)

    There are a number of program used by Coca Colas marketing managers to access data

    in database system, to analyze the data and to provide information to guide marketing

    decisions.

    5. Administrative Support:

    Coca Cola Company is always too much conscious to ensure the administrative support

    in marketing activities and in maintaining the MKIS.

    Data resources of Coca Colas MKIS for gaining competitive

    advantage:

    To gain competitive advantage in the market place organization need to effectively

    identify potential market, conceive new products, develop appropriate pricing,

    developing and coordinating distribution system, developing ongoing research program

    etc. To carry out these activities effectively, marketers need extensive information on

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    timely basis (Marshall, 1996).For this reason Coca Cola always tries to get and maintain

    a huge amount of both internal and external data.

    Coca Colas internal data resources:

    Internal data are available from within a companys information system. It is normally

    not accessible by outside parties without the companys express permission. (Barron's

    Business Dictionary)

    To get success by using MKIS Coca Cola always try to maintain updates of internal data

    that is companys purchases, production, receivable, payable, inventory, sales, marketing

    etc.

    Coca Colas external data resources:

    External data are the data originate outside the organization. To ensure competitive

    advantage Coca Cola maintain external data resources carefully. It gets that information

    usually from

    Business partners

    Marketing environment data subscription services

    Single source data services

    Marketing research etc.

    Decisions support systems or DSS of coca-cola:

    A decision support system (DSS) is a computer-based information system that supports

    business or organizational decision-making activities. Actually it is a set of technology

    which involves in problem solving (Keen, P.G 1978).The components of DSS used by

    coca-cola are:

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    Reporting & inquiry system:

    Reporting and inquiry system means providing data about the occurring issues to the

    marketing manager. From lowest level to highest system its important (Marshall 1996).

    Coca-cola Company collects informations about the issues what are occurring in every

    sectors of the organization. They design their reports on video display terminal. In past

    the company used printed reports but its very time consuming to produce and distribute

    so now they use computer based inquiry system .(www.cocacola.com)

    Forecast Model:

    The coca-cola company use unconditional Forecast model for predicting future events.

    We know Unconditional forecast models predict future events using historical data but

    without explicit assumptions about environmental factors (www.cocacola.com). These

    organizations deal with multiple levels of aggregation and require consistent forecasts at

    all levels. For instance the company might need a forecast for total sales, as well as a

    forecast for each brand, each customer segment, and each container. Forecast Revenues

    for the first two months of the following period:

    The linear time trend line per quarter is estimated as: t= 4804.5 + 42.917T

    The monthly equation for net operating revenue becomes: M = 1601.5 + 14.306t

    Where,

    M = the forecasted monthly net operating revenue (in millions dollars)

    t = is a time code for month.

    The forecasted net operating revenue for January and February of 2002 are as

    follows:

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    January, 2002: M1 = 1601.5 + 14.306 * (1+3 * 8 + 1)

    = 1973.456 that is $1,973.456 million.

    February 2002: M2 = 1601.5 + 14.306 * (1+3 * 8 + 2)

    = 1987.762 that is $1,987.762 million.

    The forecasted sales would affect financial leverage by improving (decreasing) the debt

    to equity ratio, as long as the equity is available. Increased sales should also cause the

    financial leverage index to increase. If the equity is not available to increase the revenue,

    Coca-Cola will be under financial stress and the increased revenue may adversely affect

    the company as a whole. (Atlanta Business News)

    Executive support system:

    An executive support system is a computer based system intended to facilitate and

    support the information and decision making needs of senior executives by providing

    easy access to both internal and external information relevant to meeting the strategic

    goals of the organization (Quorum Books, 1991).

    The managers of coca-cola company use ESS to easily review business performance and

    explore their implication for future decisions. The company may wish to have access to

    such indicators such as retailers, customers, price, etc.

    The company combines reporting and inquiry system on current issues of its activities

    using this executive support system. (www.slideshare.net.com)

    Artificial intelligence and Expert System:

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    Artificial Intelligence (AI) is a branch of computer science, which focuses on the

    development of computer systems to simulate the processes of problem solving and

    duplicate human brain functions. Expert systems (ES) are a category of programs based

    on the theory and methods of artificial intelligence.(Marshall,1996)

    Many large corporations use expert systems in their business. Coca-cola is one of them

    that use expert system using the knowledge of expert as input to bring more customers

    into their stores and sell the products they carry. Virtually all retailers with a scanner

    collect significant amounts of data on customer purchases, including universal product

    code, number of items, price etc.(communication research).

    ES for Prediction and Forecast:

    The prediction and forecast category of ES enables the company of forecasting of

    possible outcomes of observable situations. Examples may include the prediction of

    threat from competitors, finding opportunities, estimation of the demand for coca-cola;

    Fanta in the global market place, or prediction of the next armed conflict. Also included

    in this category are weather forecasting, scoring and predictive modeling, risk

    management and other financial forecasting. (Efrain Turban, jay lie bowitz).

    When executive support systems were used, the company purpose was to package its data

    and to provide sales performance or market research statistics for decision makers or top

    managers. Traditionally these systems were only used to support executive decisions

    instead of using information for the entire company. Now-a-days, ESS is not only used

    by senior management buy they are installed at personal computers and workstations on

    local firms networks. ESS systems are becoming so widespread that employees of coca-

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    cola can access this information through their own personal computers.

    (www.cocacola.com)

    Creating Marketing Information System by Coca-cola:

    Marketing Information System is not a linear or simple process; its a complex process,

    considering the process of planning, developing and implementing

    (www.slideshare.com). Coca -Cola is adapting its uncertain and changing internal

    environment, because the information needs are often change. Coca Colas MKIS is

    managed by using user friendly software that creates assets to IS specialist with extensive

    capabilities with flexibility and formal-ongoing efforts of 3 major stage and these are:

    Planning

    Technical development

    Implementation:

    Planning:

    Adopting a custom focused business method is a process method to increase the chances

    of a sustainable and profitable future (WWW.marketing-made-simple.com). The

    planning ofCoca Colas MKIS process ensures the customer is at the centre of key

    decision. Here, substantial cooperation is needed from all areas of the organization (Cox

    and Goode, 1976; Marshall Lamotte 1992).

    Coca-Colas core aspect of business planning involves 6 stages:

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    Securing executive commitment:

    The MKIS plan is a structured approach (WWW.marketing-made-simple.com).) That

    generally involves a small group of high-level managers who deal with very complex,

    non-routine problems (WWW.Fao.org/docrep). Various departments in the Coca Cola,

    requires cooperation and access to data is the 1st reason for obtaining executive

    commitment and 2nd reason to curb the huge expense.

    Establishing the MKIS team:

    In the formal appointment ofCoca Cola, the MKIS group that will lead the remainder

    of the planning effort is the 2nd step (Marshall, 1996). The high-level managers ofCoca

    Cola ensuring clear understanding and cooperation throughout the organization, liaison

    of perfect sharing of responsibilities is developed by IS and marketing departments team

    members.

    Executing a marketing audit:

    A vision of the system is created by the marketing audit (Kotler, Gregor, and Rogers,

    1977). Coca Colas marketing audit review the planning (www.Marketingteacher.com)

    of SWOT analysis of internal environment as well as the external environment and PEST

    analysis solely for its external environment (www.Marketingteacher.com)

    Developing organization goals:

    Coca Colas goal is realistic and determining its usefulness with time frame, is stressed

    in a modular fashion.

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    Defining macro specification:

    Technical requirements of system established by macro specification, based on goals

    (Cooke, 1993) are defined. Coca Cola ensures it by specifying careful research of

    existing marketing focus group with prioritizing modular planning.

    Budgeting:

    Resource allotment and responsibilities are assigned to guide technical development and

    implementation stages (Laudon and Laudon, 1988). Coca Cola avoids its role conflict

    with the formalization of project and accurate resource allocation.

    Technical development stage:

    Unlike planning, this is an interactive process not a linear one. Actual program is

    accomplished and fundamental stage is established by managing Coca Colas MKIS

    database, with software and hardware, effective communication system integrity with

    approved user interfaces (Marshall, 1996).

    This stage involves 8 complex steps:

    Creating MKIS database:

    Data dictionary in Coca Colas formal documentation have identification and

    integration of data transformation (Marshall and Lamotte, 1992; Cox and Goode, 1967).

    It can be used to help create a competitive advantage, and can even substitute for

    expensive assets (www.slis.indiana.edu/faculty/)

    Defining software requirements:

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    At the macro specification ofCoca Cola a specific logical process of modular approach

    is focused on specific application software, combining commercial and in-house software

    (Chandler and Liang, 1990).

    Defining hardware requirements:

    The creation of suitable conditions to insert beneficially in increasingly competitive

    market (www.iicd.org/projects/bolivia-aclo) hardware configuration and workstation

    standardization in Coca-Cola handled rightly.

    Developing a communication network:

    Point-to-point communication and resource allocation flexibly is running on Coca

    Colas communication. (www.thecoca-colacompany.com/).

    Developing system controls:

    To govern Coca Colas system operation, protection of data integrity and user access is

    considered carefully.

    Designing user interfaces:

    Satisfaction for decision makers in retrieving relevant data, Coca Cola is using 4GL and

    graphical menus interfaces (Marshall, 1996)

    Constructing prototypes:

    This process is easier, cheaper and faster micro version .Needed corrections and

    developments are more likely to be done at (www.slis.indiana.edu/)Coca Colas model.

    Testing system modules:

    Finally, MKIS module ofCoca Cola is tested by selected marketing users (Marshall,

    1996) by comparing results with past approach in a real-world application.

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    Implementation:

    One of the most important stages of marketing information system is Implementation. It

    indicates a continuous logical process in which new modules are developed and old

    modules are modified. To adapt the MKIS to new information opportunities there are

    basically 4 activities in this stage:

    Phased implementation.

    User training.

    Feedback.

    Modification. (Marshall, 1996)

    Coca-Cola Company also takes some steps to implement its MKIS system.

    Phased implementation:

    Basically it means installing, providing documentation for and making available to users

    which is one part of MKIS. It also helps to adjust with new one with old system. And at

    one time the older and less functional is removed and new one takes place. (Marshall,

    1996)

    Here the Coca-Cola Company also takes this step like in installation where hardware,

    communication among servers and networks are needed; it also takes steps like this

    company of Egypt develops their server environment with 2 IBM power tm 570 servers

    which run IBM AIX.

    Here one server hosts the production environment at the main site, and the other hosts the

    disaster and testing environment at a remote site. When this system is established then

    Coca-Cola creates user accounts, and the marketing department members of Coca-Cola

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    test the communication system by using electronically mail and by linking each

    workstation. (www.cocacola.com)

    In documentation: Here after the installation of module, it supplements the data

    dictionary created in the technical development stage. Coca-Colas documentation

    process is task oriented because this companys MKIS team takes steps how to sign on

    the system, how to use email etc.

    User Training:Another component of implementing MKIS is user training which helps

    by giving documents to implement MKIS. (Marshall, 1996).

    Coca-Cola Company comes on site to train personnel on the operation of the server,

    interaction between the post system and server and training is also given to the operators

    who operate the device. Users are introduced and trained well to use the equipment of

    Coca-Cola correctly, and the operation service of Coca-Cola requires 1-2 full days.

    (Marshall, 1996).

    Feedback:

    It is a process where users provide information by using system and it helps to improve

    performance. It identifies the need and helps to adapt. One advantage is that if this feed

    back is shared with the system developer, it enhances users satisfaction. (Marshall,

    1996).

    In Coca-Cola Companysince in this company new bugs are discovered so the feedback

    is shared with the system developer. Coca-Cola uses email system, investigation by

    administrator, suggestion from MKIS team. It can uses 360 degree feedbackwhere

    performance evaluation is measured with feedback from subordinates, peers, managers to

    know what and where all employees have to improve. (www.Feedback.com).

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    Modification:

    It indicates any change which may be required after the installation of any system. There

    are basically 3 types of modification:

    1. Modification involves small adjustment to correct bugs.

    2. Modification involves correcting significant system errors.

    3. Modification involves developing new modules to provide new capabilities.

    Coca-Cola Company takes some steps for changing some systems. It is spending 10

    millions of dollar and change effort such as reengineering and information technology

    installation. Now it tries to solve 2 problems how to plan for better implementation, how

    to overcome employee resistance.

    Continuing trend in computing:

    The information explosion is revolutionizing market price. And it is not over yet. There

    are basically 3 types of trends like:-

    Continuous improvement in data collection and dissemination.

    Increasing power of computing to more speed of processing, data storage.

    Developing intelligent support software to interpret data and usage.(Marshall,

    1996)

    Coca-Cola Company also takes these steps.

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    Conclusion:

    The MKIS of Coca Cola is helping it in matching with the competitive business world.

    But in Marketing Information System most important matter is the integration and the

    proper planning for its success. So I think Coca Cola should give special attention to

    those.

    Referencing:

    Atlanta Business news, 5. 09p.m, Wednesday, September 8, 2010.

    Chandler. J. S. and T. P. Liang (1990)Developing Expert System s for BusinessApplications. Columbus, OH: Merill.

    Cooke, D.F. (1993). Unlock your companys Databases.Business

    Geographics,Vol.1, no.1 (January/February), pp.9-10.

    Cox. C. F. and R. E. Goode (1967) How to Build a Marketing Information

    System.Harvard Business Review, Vol.45, No.3, pp. 145-154.

    Dunne, P. M, and H. I. Wolk (1977) Marketing CostAnalysis: A Modularized

    Contribution Approach.Journal of Marketing(July), Pp.83-94.

    Glazer, R. (1991) Marketing in an Information-intensive Environment: Strategic

    Implications of Knowledge as an Asset.Journal of Marketing, Vol. 55, No.

    4(October), Pp. 1-9.

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